Income Taxes

3 Months Ended

Mar. 31, 2013

Income Taxes [Abstract]

INCOME TAXES

6. INCOME TAXES

Huttig recognized no income tax expense or benefit in the first three months of 2013 or 2012. At March 31, 2013, the Company had gross deferred tax assets of $41.5 million and a valuation allowance of $33.2 million for net deferred tax assets of $8.3 million. The Company had deferred tax liabilities of $8.3 million at March 31, 2013. After classifying $0.9 million of short-term deferred tax assets with short-term deferred tax liabilities, the Company had current net deferred tax liabilities of $7.4 million, as well as long term deferred tax assets of $7.4 million at March 31, 2013. The Company expects its deferred tax liabilities to be settled with utilization of its deferred tax assets. The deferred tax liabilities enable the Company to partially utilize the deferred tax assets at March 31, 2013 and the balance of the deferred tax assets are covered by the Company’s valuation allowance. The Company is not relying on future pre-tax income at March 31, 2013 to support the utilization of the deferred tax assets.